The Rise of Crypto's Consumer Era and the Importance of People in Building Great Organizations

The Rise of Crypto's Consumer Era and the Importance of People in Building Great Organizations

In the world of cryptocurrency, the concept of ownership has taken on a whole new meaning. Unlike traditional systems where ownership is often limited to a select few, crypto enables individuals to become owners from day one. This powerful concept has the potential to revolutionize industries and create opportunities that were previously unimaginable.

With the rise of consumer protocols, decentralized autonomous organizations (DAOs), and applications, the next 100 million crypto users will be driven by the desire to be part of something bigger. They want to actively participate in the growth and success of the products and communities they are a part of. This bottoms-up approach will lead to the reinvention of business models and the rise of community ownership.

One of the underlying principles of the crypto consumer era is the idea of curation. In today's digital age, we are all curators in our own right. We curate content with our likes, comments, and shares. However, the curation space remains relatively untapped. Web3, the decentralized web, offers an opportunity to curate with clear financial incentives and social status.

Social token design, for example, can create a system where users earn for curating content and split the benefits with both the curators and creators. This creates a win-win situation where users are rewarded for their contributions, and creators receive recognition and financial support. The ability to curate and be rewarded for it is a unique aspect of the crypto consumer era.

In the realm of building great organizations, the concept of "First Who...Then What" becomes crucial. Jim Collins, a renowned business author, emphasizes the importance of having the right people on the bus before deciding where to drive it. This concept applies to both traditional companies and those operating in the crypto space.

If we have the right people in key positions within an organization, we can confidently navigate the path to success. Having the right people means not only having individuals with the necessary skills and expertise but also those who align with the values and vision of the organization. It's about building a team that complements each other and shares a common goal.

When the right people are on the bus, managing and motivating them becomes much easier. They understand the mission and are driven to deliver the best results they are capable of. In contrast, having the wrong people on the bus can hinder progress, regardless of how well-defined the direction may be.

This principle also extends to the issue of executive compensation. While many believe that the structure of executive compensation plays a significant role in the success of a company, Collins's research suggests otherwise. The evidence shows that it's not how executives are compensated that matters, but rather the caliber of the executives themselves.

The good-to-great companies identified by Collins understood this simple truth. Rather than focusing on incentivizing specific behaviors, they prioritized getting the right people on the bus and keeping them there. They recognized that the right people will naturally do the right things and deliver exceptional results, regardless of the incentive system in place.

So, what actionable advice can we take from these insights?

1. Embrace the crypto consumer era: As crypto continues to gain traction and shape industries, be open to the idea of ownership from day one. Explore the opportunities that consumer protocols, DAOs, and applications offer. Participate in communities and contribute to their growth. By being an active participant, you can benefit from the success of the projects and products you believe in.

2. Prioritize people in organizational growth: Whether you're building a traditional company or operating in the crypto space, remember the importance of having the right people on board before determining the direction. Focus on finding individuals who align with the values and vision of your organization. Surround yourself with a team that complements each other's skills and shares a common goal.

3. Compensation is secondary to talent: When it comes to executive compensation, remember that it's not the structure of compensation that drives success, but rather the quality of the individuals themselves. Don't rely solely on incentives to motivate and manage your team. Instead, focus on attracting and retaining the right people who are intrinsically motivated to achieve greatness.

In conclusion, the rise of crypto's consumer era presents exciting opportunities for individuals to become owners and actively participate in the growth of products and communities. This era will bring about bottoms-up brands, business model reinvention, and community ownership. In this evolving landscape, the principles of "First Who...Then What" become paramount. By prioritizing people and ensuring the right individuals are on board, organizations can navigate the path to success and achieve greatness.